Cloudflare raises price target to $200 after Q1 beat and AI-driven restructuring announcement.

Susquehanna analyst Shyam Patil raised Cloudflare's price target to $200 from $190 following a strong Q1 FY2026 performance and the company's announcement of a major workforce reduction to support an AI-first operating model. Cloudflare beat revenue and earnings expectations, reporting $639.8 million in revenue and $0.25 EPS, while CEO Matthew Prince highlighted AI as a significant growth driver. Despite the positive outlook, the stock has declined recently, reflecting investor caution about execution risks and valuation. The company’s upcoming Q2 results and June 9 Investor Day will be key to assessing whether productivity gains translate into margin expansion.